Show Study Questions Effect on Jobs Of Tax Laws WASHINGTON A staff report report of the National Association Association Association tion of Manufacturers charges that the new Tax Reform Act Actis is of dubious value because it does not remove existing tax obstacles to capital investment and thereby encourage the creation of productive jobs in inthe inthe inthe the economy In an analysis of major busi busi- related ness aspects of the law passed by the Congress the NAM study also questions the worth of changes which proponents say will benefit small business It comments As the years go by it will be instructive to learn if farmers and small business business busi busi- ness owners have really been the beneficiaries of lower tax burdens as claimed by the Congress Congress or or among the victims vic vie victims tims of the tax reform From the viewpoint of encouraging encouraging en en- capital formation the report asserts the Tax Reform Act of 1976 is a hodgepodge hodgepodge hodgepodge hodge hodge- podge of pluses and minuses 1 with the pluses seemingly predominating predominating predominating pre pre- dominating in the short term but the minuses becoming more noticeable over the long term The NAM says a most troublesome aspect of the new law is what it did not do in inthe inthe inthe the capital formation area adding It did not relieve the double taxation of dividends it e did not do anything about our outmoded capital recovery system system system tem other than to extend the 10 per cent investment credit and it did not do anything to counteract the corrosive effect of inflation operating through the existing tax system The report concludes Perhaps Perhaps Perhaps Per haps the best that can be said about the Act is that it could have been worse |